Starbucks brews up single-cup coffee deal

DATELINE

The company says it will provide coffee for Courtesy Products' coffee systems in up to 500,000 hotel rooms across the country beginning this fall.

Starbucks and Courtesy did not disclose the value of the deal. It is a major step by the world's biggest coffee company into the fast-growing single-cup coffee market.

The deal follows reports over the weekend that Starbucks was talking with Green Mountain Coffee Roasters to provide coffee for its popular Keurig Brewing system.

Starbucks is looking to expand in the segment as it ends its distribution agreement with Kraft Foods Inc., under which Starbucks provides coffee discs for Kraft Foods' Tassimo one-cup brewer. Kraft also distributes the coffee giant's products to retailers.

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